Entrust vs GoDaddy Which Is a Better Investment?

Entrust and GoDaddy are two companies that operate in the domain registration and web hosting industry. Entrust is known for its secure and reliable services, while GoDaddy is popular for its user-friendly platform and variety of products. Both companies have experienced growth in recent years, with Entrust focusing on cybersecurity solutions and GoDaddy expanding its customer base through targeted marketing strategies. Investors may consider factors such as market trends, competition, and financial performance when choosing between Entrust and GoDaddy stocks.

Entrust or GoDaddy?

When comparing Entrust and GoDaddy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Entrust and GoDaddy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Entrust has a dividend yield of 2.79%, while GoDaddy has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Entrust reports a 5-year dividend growth of 19.74% year and a payout ratio of 0.00%. On the other hand, GoDaddy reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.50%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Entrust P/E ratio at 13.34 and GoDaddy's P/E ratio at 13.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Entrust P/B ratio is 2.63 while GoDaddy's P/B ratio is 72.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Entrust has seen a 5-year revenue growth of 1.84%, while GoDaddy's is 0.95%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Entrust's ROE at 21.08% and GoDaddy's ROE at 747.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥764.00 for Entrust and $178.76 for GoDaddy. Over the past year, Entrust's prices ranged from ¥605.00 to ¥904.00, with a yearly change of 49.42%. GoDaddy's prices fluctuated between $87.16 and $184.35, with a yearly change of 111.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.